Research & Insights
Organizational Rightsizing
Wouldn't it be perfect if we could balance excellent legal work with strategic business development to create a system where a firm's relationships with clients naturally deepen with time? It's a common challenge across many legal practices where the demands of casework and billable hours often leave little room for nurturing valuable business partnerships. This doesn't happen because one is not committed to their clients; instead, it stems from industry-standard practices that unintentionally limit business development and sustainable growth.
However, we've seen firsthand how addressing this common blind spot creates remarkable growth opportunities. By shifting from matter-focused interactions to relationship-centered engagement, firms can foster sustainable growth while differentiating themselves in today's competitive landscape. A few small and practical changes are all one needs to get started.
Let's explore how small, practical changes can create a robust and proactive Customer Relationship Management (CRM) system that will help you build on the excellent legal work you're already doing.
Most law firms operate with a billing-centered approach to client interactions. It's perfectly natural – after all, the legal profession is structured around matters, hours, and invoices. But this approach can sometimes work against long-term business development because it prioritises immediate metrics over enduring partnerships.
Recognising opportunities beyond active matters is an essential first step. When a case closes, it's easy for the client to move "out of mind" until another matter arises. We've worked with firms that've countered this by implementing simple follow-up systems, which have continued to keep connections warm during inactive periods.
Another key opportunity lies in accessing the wealth of client insights already within your firm. It's not uncommon for critical client information to remain scattered across individual attorneys' email accounts, contact lists, and personal knowledge. This compartmentalization happens organically—lawyers are expertly trained to solve immediate legal problems rather than track relationship data.
The very nature of legal work is confidential; however, firms can establish appropriate systems for sharing relationship intelligence while maintaining necessary confidentiality. This will enable them to approach client development proactively without compromising their core legal expertise.
We've found that firms achieve the best results when they understand each client's broader business context—their industry challenges, growth plans, and competitive landscape—instead of focusing solely on discrete legal matters.
Each client relationship follows a natural progression; the firm must be proactive in recognizing and nurturing these connections through every stage of their development. Each stage in this cycle is an opportunity for data collection and requires stage-specific attention.
1. Initial Contacts and Referrals
At this earliest stage—when potential clients are merely referrals, website inquiries, or networking connections—you can begin building a foundation for lasting relationships by tracking:
- Who referred them to your firm (allowing you to nurture these valuable referral sources)
- Their initial areas of legal interest (helping you connect them with the right expertise)
- Contact details beyond just the primary person (establishing multiple relationship points)
2. Prospects
As initial contacts show genuine interest, they become prospects. We've seen how tracking a few key data points at this stage can dramatically improve conversion rates:
- Identifying the key decision-makers and their roles within the organisation.
- Quantifying the budget parameters and timeframes for decision making.
- Do they match the qualification criteria, i.e., legal needs alignment, financial capacity, and growth potential?
While this information often remains scattered across emails, notes, and attorneys' memories, a simple, centralized approach will help prioritize business development efforts and identify promising opportunities.
3. Active Clients
Even during active matters, there are opportunities to strengthen client relationships beyond the current engagement. The business development aspect of CRM should continue tracking:
- Additional decision-makers and influencers within the client organisation
- Upcoming business initiatives that might benefit from legal support
- Potential expansion into other practice areas
- Key business events and triggers
Each of these represents a chance to provide additional value and demonstrate your understanding of their business.
4. Dormant Clients
We've found that the "dormant client" phase—after matters have concluded—is perhaps the most overlooked opportunity in legal business development. Simple tracking at this stage might include:
- Scheduled check-ins and follow-ups
- Monitoring for relevant business changes
- Satisfaction assessments
- Referral opportunities
Firms we've partnered with report significantly higher client retention and referral rates after implementing systematic follow-up programs. Even simple practices, such as tracking relevant deadlines, create natural points of contact that keep your firm at the forefront of your mind.
Thoughtful relationship tracking helps firms shift from reactive to proactive client engagement. Instead of waiting for clients to identify legal needs, you can anticipate them based on trigger events such as:
- Regulatory changes in the client's industry
- Business expansion or contraction
- Leadership changes or structural reorganisations
- Litigation or transactions involving competitors
This approach demonstrates to clients that you're genuinely invested in their business success, not just their legal matters.
By analyzing simple metrics, such as engagement frequency, alongside potential value indicators, you can direct your marketing and business development resources more effectively. We've helped firms move from pursuing every potential client to focusing on those with the most significant promise.
Perhaps the most valuable transformation we've witnessed is the creation of a shared intelligence culture. When business development data is systematically captured and appropriately shared, your firm's collective knowledge becomes greater than the sum of its parts. Institutional relationships persist even after individual attorney departures, and business development networks extend beyond individual partners. Additionally, the strategic insights from this collection inform growth planning and reveal new business opportunities.
In today's competitive legal market, strategic client development is often the key differentiator between firms. The true value of CRM lies in managing the pipeline, from pre-qualified leads to prospects, current clients, and dormant clients, all from a business development perspective.
For firms willing to make even modest investments in this approach, the rewards extend far beyond increased revenue. You'll build stronger, more enduring client relationships and develop a practice model that can weather market fluctuations.